Timeshare News

Timeshare Exit Company American Resource Management Group Declares Bankruptcy

May 15, 2019
Timeshare Exit Company American Resource Management Group Declares Bankruptcy

T his past April, a top timeshare exit company known as American Resource Management Group, LLC (ARMG) filed for bankruptcy in the U.S. Bankruptcy Court for the Southern District of Florida. The lawsuit claimed ARMG violated the Florida Deceptive and Unfair Trade Practices Act and other laws through the use of false and misleading advertising. The events that transpired during the lawsuit helped shed light on the havoc brought into the lives of innocent timeshare owners that hire timeshare exit companies.

During the American Resource Management Group bankruptcy court hearings in April, serious red flags were raised when the court appointed a Chapter 11 Trustee to look into the business ethics and finances of ARMG, and four related timeshare exit companies. According to the American Resort Development Association - Resort Owners' Coalition (ARDA-ROC), the court expressed concerns over ARMG's advertising, specifically their claim to consumers they were a Midwestern-based firm while actually operating out of Florida. Despite being paid large upfront fees from timeshare owners, American Resource Management Group had minimal cash in their bank accounts and insufficient reserves to cover the potential “100% guarantee” claims that they made to thousands of innocent timeshare owners.

American Resource Management Group operated under other business names and is related to a number of other companies that also filed for bankruptcy, such as:
Over the last few months, two other timeshare exit companies (American Consumer Credit and Castle Law Group) were shut down and one timeshare exit company attorney was disbarred. While putting an end to fraudulent exit companies is great for consumers, the reality is that thousands of timeshare owners have paid an exorbitant amount of money in exchange for non-existent services and have been unable to recover their lost funds despite supposed “100% guarantees”.

Timeshare industry companies are taking a stand in an effort to protect their timeshare owners from fraud and timeshare exit scams. Diamond Resorts, Holiday Inn Club Vacations, Westgate Resorts, and Wyndham Destinations have all filed suits against third-party exit companies and timeshare attorneys. ARDA-ROC even created a website dedicated to helping consumers safely exit their timeshare.

If you're considering options for altering your timeshare ownership, be sure to check out ARDA- ROC's website to avoid getting caught up in a timeshare exit scam.

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